Waiver of First-Party Policy Conditions, And No "Do Over"!

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   A Proof of Loss requirement in a First-Party Insurance Policy is a condition precedent to successfully pursuing Coverage under that Policy.  A Proof of Loss requirement can also be waived. 

   Waiver has been addressed by the Florida Courts for many decades.  For example, waiver can occur, say the Florida Courts, by the payment of any amount of the potentially covered Loss, or by admitting liability for any part of the potentially covered Loss, if the First-Party Insurer makes the payment or other admission of liability on the Policy before receiving the Proof of Loss:

   The law is well established that when an insurer admits liability in an unagreed amount, formal proof of loss is thereby waived .... 

Llerena v. Lumbermens Mutual Casualty Co., 379 So. 2d 166, 167 (Fla. 3d DCA 1980)(subscription required to access Westlaw or Southern Second), not available on the Florida Third District Court of Appeal's web site where archived Online Opinions at this time only go back to July 18, 2001.

   Further, once the waiver has been established, the Florida Courts have held that it is irrevocable.  "Once the insurer waives the giving of proof of loss, such waiver is irrevocable."  American Bankers Insurance Co. v. Terry, 277 So. 2d 563, 564 (Fla. 3d DCA 1973).

   Attention must be paid to Proof of Loss requirements, both by Counsel for the Policyholders and Insureds, and by Counsel for the Insurer.

There is a post on Insurance Claims and Issues Web Log, on April 1, 2010, about a case in which Proof of Loss provisions were construed earlier this year.

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